NITI Aayog unveils roadmap to boost MSME impact through converged schemes

THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 15, 2026

In a significant push to enhance the effectiveness of government support for India’s Micro, Small and Medium Enterprises, NITI Aayog on Thursday released a comprehensive report titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes.” The report, launched by Dr. Arvind Virmani, Member, NITI Aayog, and B. V. R. Subrahmanyam, Chief Executive Officer, NITI Aayog, lays out a strategic framework to streamline MSME schemes, eliminate overlaps and improve outreach to beneficiaries.

The report presents a detailed blueprint aimed at improving outcomes for MSMEs by strengthening inter-ministerial coordination, streamlining scheme implementation and enhancing the delivery of financial, skill, marketing and innovation support. It undertakes an extensive evaluation of existing Government of India programmes for the MSME sector, assesses the current level of convergence among them and draws on best practices from central ministries, state governments and international experiences. Based on this analysis, the report offers actionable recommendations to unlock convergence opportunities and introduce corrective measures to improve efficiency, outreach and overall impact.

Highlighting the need for convergence, the report notes that the Ministry of MSME currently administers 18 schemes covering critical areas such as credit assistance, skill development, marketing support, innovation and research, technology upgradation and infrastructure development. While these initiatives have contributed significantly to MSME growth, overlapping objectives and fragmented implementation across ministries often result in duplication, inefficiencies and limited reach. The report underscores that effective rationalisation and convergence can simplify access for beneficiaries, improve translation of resources into tangible outcomes and reduce confusion, thereby amplifying the overall impact of public spending.

To address these challenges, the report recommends a two-pronged approach focusing on information convergence and process convergence. Information convergence emphasises integrating government-generated data at the central and state levels to improve coordination, enable informed decision-making and strengthen governance outcomes. Process convergence, on the other hand, seeks to align and unify schemes to reduce redundancies, streamline operations and improve service delivery through the merging of similar schemes, consolidation of common components and enhanced collaboration across ministries and states.

Among its key proposals is the creation of an AI-powered centralized digital portal for MSMEs that would integrate schemes, compliance requirements, finance and market intelligence on a single platform. Drawing on global best practices, the proposed portal would offer information, process and compliance modules, market research tools, AI chatbots, dashboards and mobile access to provide real-time support to enterprises.

The report also recommends convergence of cluster development schemes by integrating the Scheme of Fund for Regeneration of Traditional Industries with the Micro and Small Enterprises–Cluster Development Programme. It proposes a dedicated sub-scheme for traditional industries, a unified governance structure and consolidated funding with earmarked resources to preserve crafts, arts and endangered traditional industries while improving scale and efficiency.

In the area of skilling, the report suggests rationalising existing initiatives into a three-tier structure covering entrepreneurship and business skills, MSME technical skills, and specialised training for rural and women artisans. This approach aims to merge overlapping programmes, improve coordination among institutions and retain targeted interventions to promote inclusion, traditional crafts and entrepreneurship.

To strengthen market access, the report proposes the creation of a dedicated Marketing Assistance Wing with domestic and international components. While the domestic wing would facilitate MSME participation in national exhibitions, trade fairs and buyer-seller meets, the international wing would focus on global market access through overseas trade fairs, B2B events and international buyer-seller interactions.

On the innovation front, the report recommends integrating the Scheme for Promoting Innovation, Rural Industry and Entrepreneurship into MSME Innovative as a special category for agro-rural enterprises. While existing ASPIRE funds would continue, future MSME Innovative budgets would earmark a share for agro-rural incubators, thereby broadening access to advanced incubation facilities without restricting sectoral focus.

At the same time, the report stresses the importance of safeguarding targeted initiatives such as the National SC/ST Hub and the Promotion of MSMEs in the North Eastern Region, while recommending that large flagship programmes like PMEGP and PM Vishwakarma remain independent due to their scale and strategic economic significance. Advocating a cautious approach, the report calls for selective convergence of schemes with overlapping objectives, enhanced collaboration where full merger is not feasible, and rigorous tracking of outcomes to ensure that beneficiary interests remain protected and the intended impact is sustained.